The consequences of free trade in manufactures between Israel and the EEC
In 1975 Israel and the EEC signed a preferential trade agreement, which included provision for free trade in manufactured goods between the signatories by 1989 at the latest. The present study examines the economic consequences for Israel of such a free trade area. Although political factors are clearly important in determining the course of EEC-Israel relations, analysis of their economic aspects is facilitated by abstracting from the political issues. Within this framework, the free trade area can be seen as a case of mutual preferences between a large economically developed bloc and a small semi-industrialized country. During the 1960s economists and policy-makers, dissatisfied with the results of industrialization by import substitution, began to advocate the export of manufactures according to comparative advantage as a suitable development strategy for the less-developed countries (LDCs). A major obstacle to the success of this strategy was considered to be the tariff barriers existing in the high-income countries, where the largest markets lay, and the UN Conference on Trade and Development expended much energy between 1964 and 1971 in negotiating a system of preferential tariffs to be offered to LDCs. The intention was that eighteen developed countries would participate in the common system, but lack of agreement led to each country or bloc adopting a separate scheme. The individual preference systems which have emerged have come under a great deal of criticism, because they exclude some manufactured goods (usually the ones in which the LDCs have a comparative advantage) and place ceilings on preferential trade in other goods.
|Date of creation:||1976|
|Date of revision:|
|Contact details of provider:|| Postal: Kiellinie 66, D-24105 Kiel|
Phone: +49 431 8814-1
Fax: +49 431 85853
Web page: http://www.ifw-kiel.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- W. M. Corden, 1957. "The Calculation Op The Cost Op Protection1," The Economic Record, The Economic Society of Australia, vol. 33(64), pages 29-51, 04.
- Basevi, Giorgio, 1970. "Domestic Demand and Ability to Export," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 330-37, March-Apr.
- W. Giles Mellon, 1967. "Discussion," Journal of Finance, American Finance Association, vol. 22(2), pages 192-194, 05.
- Krauss, Melvyn B, 1972. "Recent Developments in Customs Union Theory: An Interpretive Survey," Journal of Economic Literature, American Economic Association, vol. 10(2), pages 413-36, June.
- Bela Balassa, 1965. "Tariff Protection in Industrial Countries: An Evaluation," Journal of Political Economy, University of Chicago Press, vol. 73, pages 573.
- Mordechai E. Kreinin, 1973. "Some Economic Consequences Of Reverse Preferences," Journal of Common Market Studies, Wiley Blackwell, vol. 11(3), pages 161-172, 03.
- Simón Teitel, 1974. "Economies Of Scale And Size Of Plant: The Evidence And The Implications For The Developing Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 13(2), pages 92-115, December.
- Murray, Tracy, 1973. "How Helpful is the Generalised System of Preferences to Developing Countries?," Economic Journal, Royal Economic Society, vol. 83(330), pages 449-55, June.
- Richard A. Easterlin, 1961. "Israel's Development: Past Accomplishments and Future Problems," The Quarterly Journal of Economics, Oxford University Press, vol. 75(1), pages 63-86.
- R. Pomfret, 1975. "Some interrelationships between import substitution and export promotion in a small economy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 111(4), pages 714-727, December.
- R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," Review of Economic Studies, Oxford University Press, vol. 24(1), pages 11-32.
- James Riedel, 1975. "The nature and determinants of export-oriented direct foreign investment in a developing country: A case study of Taiwan," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 111(3), pages 505-528, 09.
- Stigler, George J, 1976. "The Xistence of X-Efficiency," American Economic Review, American Economic Association, vol. 66(1), pages 213-16, March.
- Dunning, John H, 1973. "The Determinants of International Production," Oxford Economic Papers, Oxford University Press, vol. 25(3), pages 289-336, November.
- Harry G. Johnson, 1960. "The Cost of Protection and the Scientific Tariff," Journal of Political Economy, University of Chicago Press, vol. 68, pages 327.
When requesting a correction, please mention this item's handle: RePEc:kie:kieliw:51. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dieter Stribny)
If references are entirely missing, you can add them using this form.